Is Bitcoin safe?
Bitcoin fell to a seven-month low, falling below $50,000 amid a global market rout. The fall had a huge impact on the cryptocurrency market, with total liquidations exceeding $1 billion.
Given the significant negative impact of the Japanese market plunge, some may question whether Bitcoin is still safe, especially as a safe haven.
However, it is worth noting that Bitcoin is proving to be a digital asset worth considering as a safe haven in times like this. In March 2023, when major U.S. banks collapsed, the price of Bitcoin briefly rose to $29,000, a significant increase from its lowest level of less than $20,000 that month.
Additionally, it is worth noting that the impact of this Japanese market crash is not limited to Bitcoin, with several other major crypto assets such as Ethereum and Solana also experiencing significant declines. Ethereum fell to $2,197, its lowest level since January this year; Solana also bore the brunt, falling to $110.
In addition to these major cryptocurrencies, traditional assets were also affected, with shares of Nvidia, Tesla, and Apple falling by at least 4%.
This shows that the recent crash does not mean that Bitcoin is not safe enough, but rather it reveals Bitcoin’s correlation with changes in the global economy.